Insurance is one of the necessary evils involved in owning a small business. It’s always worth dedicating some time to though because if you don’t, you might end up paying more than you should be. And on top of that, you might not even be as well covered as you should be.
If you take the time to go through all your policies and see where things are going wrong, you’ll be able to do something about it. Because if there’s one thing I’ve noticed about business owners, they like to moan about insurance, but how many of them actually do something about the problem? Here’s how you can improve your coverage and save a bit of money too!
Combine Your Policies
If, as you’re going through your many insurance policies, you notice that you’re using a lot of different companies, it might be worth switching things around. You will probably be able to save some money if all your policies are looked after by a single provider. This makes them much easier to keep track off as well.
There are other ways of combining your policies though. For example, if you run a company that relies on a fleet of vehicles, think about how you insure them. Does it make sense to cover them individually, or is it cheaper to get fleet insurance?
Think About Coverage vs. Price
When you’re shopping around for insurance policies, you need to make sure you’re striking the right balance between coverage and price. You can do things to cut down your premiums by taking away some of the coverage you receive, but this isn’t necessarily a good idea. It depends on your needs.
One way to lower the cost of your insurance policy is to increase your deductible. Your deductible refers to the amount of money you have to pay out before the insurance company step in.
Start a Captive Insurance Company
Setting up a captive insurance company is a form of risk management. It allows a company or group of companies to insure themselves against specific losses or damages. This is why it is described by some people as a form of self-insurance rather than the regular kind of insurance.
A captive insurance company can save you money and reduce risk if you do it properly. Make sure you get an expert on board before you think about setting one up though.
Cover Your Specific Needs
Different companies face different risks and different potential problems. Therefore, it’s best to make sure your company is covered against specific incidents that may be specific to your industry. This may cost more money, but you’ll be thankful for it if you ever have to make a claim on your policy.
Speak to a Broker
Insurance brokers are there to give you advice on insurance policies. This makes them more useful than individual insurance providers whose only interest is to sell you a policy as quickly as possible.
They’re experts in their fields, so if you provide them with the details of your company and its needs, they’ll be able to find the best and most cost effective policy for you.